Ive just have had that when I plug it in, it goes to the recognizing part but the menu "playing, list, etc..." doesn't come up and it doesn't play. It still charges though. I just unplug the phone and plug it in again and that seems to work.... now I don't have the nav setup though either....

Have you guys recently upgraded your iPod firmware? I had read a list of firmware that was compatible and a note that said something to the effect ... that certain firmware may perform in a inconsistent manner.